Marigold
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5% NSR / 1.75% NSR¹ 140,900 oz (Au) 1,891,000 oz (Au) 1,036,000 oz M&I² / 2,521,000 oz Inf. (Au) Goldcorp Inc. / Barrick Gold Corporation³ |
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The Marigold property is made up of the SFP (Sante Fe Pacific) portion and the VEK (VEK/Andrus claims) portion. Franco-Nevada holds a 5% NSR royalty on production from the SFP portion of the Marigold property. The mine is located in Humboldt County, Nevada and has been in operation for over 15 years. The mine is operated by conventional open pit mining with heap leaching. Marigold is operated by a joint venture comprised of Goldcorp Inc. (66.66%) and Barrick (33.33%).
Franco-Nevada also holds an effective 1.75% NSR on the VEK portion of the Marigold property. This portion of the Marigold property was previously in production and generated revenues on production from the 8-south ore body from 1989 to 1994. Although there is no current production from this property, an AMR of $160,000 is currently payable annually and is required to be credited as an advance to be deducted from subsequent royalties paid on production from the VEK claims.
In 2007, production declined relative to 2006 due to lower mined grades and higher strip ratios. However, pit sequencing shifted production from the lower grade Antler pit to the higher grade Basalt pit in the second half of the year. Exploration is now focused on the expansion of the Basalt pit, the evaluation of the Trout Creek fault trend and on the evaluation of structural targets in the gravel-covered pediment at the north end of the property.
¹ Franco-Nevada has a 7/12 interest in a 3% NSR on the VEK portion of the Marigold property, resulting in an effective royalty rate of 1.75%.
² Measured and indicated resources are exclusive of reserves.
³ Mine information figures in this chart represent the corresponding figures of Goldcorp and Barrick in the aggregate.